This Is Why AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's (VIE:ATS) CEO Compensation Looks Appropriate

By
Simply Wall St
Published
July 01, 2021
WBAG:ATS
Source: Shutterstock

Performance at AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) has been reasonably good and CEO Andreas Gerstenmayer has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 08 July 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for AT & S Austria Technologie & Systemtechnik

Comparing AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's CEO Compensation With the industry

According to our data, AT & S Austria Technologie & Systemtechnik Aktiengesellschaft has a market capitalization of €1.4b, and paid its CEO total annual compensation worth €948k over the year to March 2021. That's a notable increase of 9.2% on last year. We note that the salary of €562.0k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from €840m to €2.7b, we found that the median CEO total compensation was €948k. This suggests that AT & S Austria Technologie & Systemtechnik remunerates its CEO largely in line with the industry average.

Component20212020Proportion (2021)
Salary €562k €532k 59%
Other €386k €336k 41%
Total Compensation€948k €868k100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. AT & S Austria Technologie & Systemtechnik is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
WBAG:ATS CEO Compensation July 1st 2021

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's Growth

Over the last three years, AT & S Austria Technologie & Systemtechnik Aktiengesellschaft has shrunk its earnings per share by 10.0% per year. In the last year, its revenue is up 19%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Been A Good Investment?

Boasting a total shareholder return of 140% over three years, AT & S Austria Technologie & Systemtechnik Aktiengesellschaft has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for AT & S Austria Technologie & Systemtechnik (of which 2 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from AT & S Austria Technologie & Systemtechnik, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.